Jan. 24 (Bloomberg) -- Valero Energy Corp., the largest U.S. refiner, said it has begun restoring to service the final unit damaged in a fire last year at its McKee refinery in Texas.

The refinery will return to full rates of production once the propane deasphalter is at full power by the end of this month, Bill Day, a company spokesman, said in a telephone interview. The refinery, which shut after the February blaze, is running at about 90 percent of its capacity.

The unit, which removes asphalt from partially processed petroleum, ``is in the start-up mode right now,'' Day said.

The return of Mckee refinery to full process rates will boost production before the spring and summer, when motor-fuel demand typically rises. McKee's return comes as other refineries, including BP Plc's plants in Texas City, Texas, and Whiting, Indiana, restore normal operations after unit shutdowns lasting between eight months and two years.

The McKee plant is capable of processing 181,000 barrels of oil a day, according to Energy Department and company data. The refinery is about 65 miles (105 kilometers) north of Amarillo, Texas.

To contact the reporter on this story: Robert Tuttle in New York at rtuttle@bloomberg.net

Last Updated: January 24, 2008 11:23 EST